Escrow & Title

When an Oregon property is sold, how are property taxes typically prorated at closing?

AThe seller pays all taxes for the year, and the buyer pays none
BTaxes are prorated as of the closing date: the seller pays their portion and the buyer receives credit for the seller's share if taxes are unpaid✓ Correct
CProperty taxes are paid in advance, so the buyer always owes the seller
DNo proration — taxes are the buyer's responsibility from the purchase date

Explanation

Property taxes in Oregon are paid in arrears. At closing, taxes are prorated as of the closing date. Since the seller has owned the property for part of the year but taxes may not yet be due, the seller's portion is calculated and credited to the buyer (or the seller pays their share at closing).

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